Auto Insurance Rates in Michigan on the Rise

Parked carsThe prices that Michigan residents pay for auto insurance coverage are heading upwards again, according to a recent report from the Upper Michigan Resource.

The reason for the latest rate hike, according to the news source, is a fee levied on all vehicle owners in the state to pay for the Michigan Catastrophic Claims Association, which pays all medical costs beyond $325,000 for the victims of vehicular accidents in the state.

The Upper Michigan Resource adds that “the MCCA also covers pedestrians and bicyclists, anyone that can be involved in an automobile accident, even if they don’t own a vehicle.” This has some vehicle owners upset, since they feel that they are being asked to pay others’ share of the costs for this service.

A general increase in safe driving could push auto insurance premiums in the opposite direction, experts say. Some states have begun to enforce good driving habits by banning the use of cell phones while behind the wheel, punishing offenders with stiff fines. The penalties are particularly stiff for second offenses.ADNFCR-3298-ID-19876912-ADNFCR

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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